Florida Foreclosure Rates Drop … For Now

As previously reported, foreclosure rates in the Sunshine State dipped in July. While Florida home mortgage experts wish they could say this consumer-friendly trend would continue, it appears unlikely.

“This relief in the foreclosure rates is comparable to going inside on a sweltering summer day only to know you have to go back outside five minutes later,” said Serdar Bankaci, president and chief executive officer of Default Research, Inc. “Simply put, this decline is temporary and the foreclosure rate will heat up later this quarter.”

Across the state, Lee County led the way with a drop of approximately 40 percent. Residents in that region didn’t have a problem paying Florida mortgage loan bills on time. While these numbers are encouraging, Bankaci identified several factors that could send the foreclosure rate up again.

“I hate to be the bearer of bad news, but rising Florida mortgage rates, the escalating cost of living, and low appreciation rates are three solid reasons why the foreclosure rates should be expected to rise again,” said Bankaci. “Any one of these reasons will hurt the average middle-class homeowner and could force him into economic distress.”

If this occurs, expect investors to swoop in and make a profit off those that go into default on their Florida home loans. These professionals will be the first to know about a property because they receive foreclosure data two to three weeks ahead of the competition, giving them a critical advantage.